3.
WHAT IS BITCOIN
• First Decentralized Digital Currency
• No Bank, Very Less Fee
• P2p(no Third Party Involved)
• No Prerequisite And Limit
• Can Be Used Anywhere Across The World
• Transaction Are High Speed, Low Cost, Secured

4.
ABSTRACT
• A purely peer-to-peer version of electronic cash
would allow online payments to be sent directly from
one party to another without going through a
financial institution.
• Digital signatures provide part of the solution, but
the main benefits are lost if a trusted third party is
still required to prevent double-spending.
• The network timestamps transactions by hashing
them into an ongoing chain of hash-based proof-of-
work, forming a record that cannot be changed
without redoing the proof-of-work.

5.
PROBLEM DEFENITION
• Commerce on the Internet has come to rely almost
exclusively on financial institutions serving as trusted
third parties to process electronic payments.
• Completely non-reversible transactions are not really
possible, since financial institutions cannot avoid
mediating disputes.
• What is needed is an electronic payment system
based on cryptographic proof instead of
trust, allowing any two willing parties to transact
directly with each other without the need for a
trusted third party

10.
WHAT IS BITCOIN MINNING
• Bitcoin Is A P2P Network ,No Centralized
Government
• Bitcoin Has Miners
• To Process The Transaction The Miners
Solve The Math Problem
• After The Transaction Is Approved, Miners
Are Given Rewards(i.e. Bitcoin)

12.
TECHNICAL BACKGROUND
• During mining, your computer runs a cryptographic hashing function (two
rounds of SHA256) on what is called a block header.
• For each new hash, the mining software will use a different number as the
random element of the block header, this number is called the nonce.
• Depending on the nonce and what else is in the block the hashing function will
yield a hash which looks like this:
93ef6f358fbb998c60802496863052290d4c63735b7fe5bdaac821de96a53a9a
• Now to make mining difficult, there is what's called a difficulty target.
• To create a valid block your miner has to find a hash that is below the difficulty
target. So if for example the difficulty target is
1000000000000000000000000000000000000000000000000000000000000000
,any number that starts with a zero would be below the target, e.g.:
0787a6fd6e0782f7f8058fbef45f5c17fe89086ad4e78a1520d06505acb4522f

13.
TECHNICAL BACKGROUND CONT…
• Because the target is such an unwieldy number with tons of digits, people
generally use a simpler number to express the current target. This number is
called the mining difficulty. The mining difficulty expresses how much harder
the current block is to generate compared to the first block. So a difficulty of
70000 means to generate the current block you have to do 70000 times more
work than Satoshi had to do generating the first block. Though be fair
though, back then mining was a lot slower and less optimized.
• The difficulty changes every 2016 blocks. The network tries to change it such
that 2016 blocks at the current global network processing power take about 14
days. That's why, when the network power rises, the difficulty rises as well.

15.
MINING HARDWARE MINING SOFTWARE
• CPU's
o In the beginning, mining with a CPU was the only way to
mine bitcoins. Mining this way via the original Satoshi
client is how the bitcoin network started. This method is
no longer viable now that the network difficulty level is
so high. You might mine for years and years without
earning a single coin.
• GPU's
o Soon it was discovered that high end graphics cards
were much more efficient at bitcoin mining and the
landscape changed. CPU bitcoin mining gave way to the
GPU (Graphical Processing Unit)
• FPGA's
o As with the CPU to GPU transition, the bitcoin mining
world progressed up the technology food chain to the
Field Programmable Gate Array.
• ASIC's
oThe bitcoin mining world is now solidly in the Application
Specific Integrated Circuit (ASIC) era. An ASIC is a chip
designed specifically to do one thing and one thing only.
• BFGminer
• CGminer
• EasyMiner
• BitCoin Plus
MINING POOL
• Eclipse
• Eligius
• BTC Guild

19.
CONCLUSION
• We have proposed a system for electronic transactions
without relying on trust.
• We started with the usual framework of coins made from
digital signatures, which provides strong control of
ownership, but is incomplete without a way to prevent
double-spending.
• To solve this, we proposed a peer-to-peer network using
proof-of-work to record a public history of transactions
that quickly becomes computationally impractical for an
attacker to change if honest nodes control a majority of
CPU power.